I would define that to be when a charismatic leader starts acting for his own benefit. He plays to his own pocket using the charisma and position and forgets the responsibility of his employees or citizens.
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Amrut Desai , former Managing Director & Country Manager India & SriLanka , Hohenstein India Pvt Ltd-fully owned by Hohenstein Institute GmbH Germany
Charismatic leadership also has severe negative effects in some cases. The shared vision and ideas between the leader and followers create enormous energy in the organization. The leader can employ this energy in destructive way.
The more the leader’s self-confident is the more are the chances that the leader will misuse the power. It’s been observed in many cases that charismatic leaders have abused their powers.
Many companies have witnessed their high rank leaders going corrupt . Because of excellent communication abilities of the charismatic leaders and due to the fact that they display some kind of charisma, the whole organization follows these leaders wholeheartedly and there remain absolutely no resistance for the leader. Without any check on the power, it doesn’t take time for the leader to go corrupt.
Any healthy organization shows competition for power which also represents tussle between values and with lack of this tussle there remains no control on the leader. Followers of the charismatic leaders are so blinded by his charisma that they might even do some acts that they wouldn’t have done ordinarily. Atrocious acts by German soldiers under Hitler’s leadership are an apt example. It was an unquestionable loyalty for their leader that compelled them to act in the way that they mostly wouldn’t have acted otherwise.